Diageo to accelerate growth in Africa

British drinks giant, Diageo, expects its annual growth in Africa to accelerate beyond the current 15 per cent, helped by its zero-duty Senator keg beer in Kenya and a strong rise in Johnnie Walker and Smirnoff spirit sales, according to a Reuters report.

 Africa is Diageo’s biggest emerging market region and vies with Latin America to be its fastest-growing, as economic growth accelerates in much of the continent and with its population of one billion set to double by 2050. “We are seeing more people with more money to spend, and with these drivers of growth in place we expect overall growth to accelerate,” Diageo’s Africa President Nick Blazquez, told Reuters in an interview on Thursday.

 The continent provides 14 per cent of Diageo’s group sales and the region has seen annual sales rise 15 per cent over the last five years. He is optimistic for more growth, with seven of the world’s 10 fastest-growing economies in Africa. “Africa provides us with a great growth opportunity while western Europe and North America are difficult. We would expect spirits to grow faster than beer,” he added.

 The growth will help the group expand the proportion of its sales it makes in emerging markets – Chief Executive Paul Walsh set a target to get half its sales from these fast-growing markets by 2015 from around 38 per cent currently.

 Culled from Punch